Contemporary Developments in Business and Management

This document discusses the contemporary developments in business and management, focusing on the case of British Airways. It covers the analysis of external factors using PESTLE framework, evaluation of the organization's marketing mix, and areas for improvement. The document provides insights into how external influences and market communication mix affect the company.

CONTEMPORARY
DEVELOPMENTS
IN BUSINESS AND
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
Introduction of Pestle..............................................................................................................................3
TASK 2..........................................................................................................................................................5
2.i Analysis Of The Organization..............................................................................................................5
Definition of Marketing Mix.....................................................................................................................5
2.ii Evaluate the Effectiveness.................................................................................................................7
2.iii Areas For Improvement....................................................................................................................9
CONCLUSION.............................................................................................................................................10
REFERENCES..............................................................................................................................................11
APPENDIX..................................................................................................................................................13

INTRODUCTION
British Airways is a United Kingdom’s company and has its headquarters in Waterside
Harmondsworth. The company is the third largest company which is making the most revenue in
this industry and the second largest in Europe. It is very important for us to understand the
company will so that the report can be accordingly. The company was established by the British
government so that they could manage the two airlines in the country which were British
European Airways and British Overseas Airways Corporation. There were four companies which
were merged and this company came out of them in 1974. The report is going to consist of the
external influences which are happening in the company and how the market communication
mix is affecting the company and what are the measures which can be taken so that the company
can do better in the industry.
TASK 1
Introduction of Pestle
It is very important for anyone to analysis the internal and external factors of the
company so that there is a better understanding of the company. The externals factors of a
company include the analysis of the following factors which are political, economic, social,
technological, legal and environmental. There has to be a deep understanding of these factors so
that the company will be able to make better decisions for themselves. And through this analysis
one can understand the importance of the organization which is British Airways in the country
(Collings, Wood and Szamosi, 2018).
Political Factor
The stability in the market is not present which can be very harmful for the company and
that will make the company have good revenue which they are having already. The company is
having a stable portfolio, and they do not wish to change that factor because it is very important
to have a place for them in the market (Halpern, Graham and Dennis, 2016). There is a lot of
corruption which takes place in all the companies in the world and so is British Airways have to

do to make the government happy and the customers satisfied with the services they are
providing to them. The taxation rates are going higher which is making the company get
demotivate because they have had a good profit scale for themselves. The company is trying to
make the wages of the employees have a low wage because of the unstable condition in the
country.
Economic Factor
The country is having a crisis which is unemployment rates in the country is increasing
which is giving the company an advantage to have employees in the company who will be
willing to work for lower wages which will be offered to them (Butt, 2020). The future of the
GDP growth will decide how much the company will be able to grow in the market and that is a
very important factor for the company. Company is keeping the prices of the airways according
to the demand and supply so that they can have a stable economic growth and stability.
Social Factor
The caste distribution plays a great role in this industry because the customers who are
flying through these airlines are middle or upper class who can afford to travel in these airlines.
The employees are also taken according to the customers so that the customers do not feel
uncomfortable (Findlay and Thompson, 2017). Employees in these airlines are educated and the
company targets for employees who are attractive because in airlines that features play a very
important role. There is discrimination in the industry which is not letting the company grow to
its full acquirement. The company makes sure that the employees of the airlines are healthy so
that they can give a healthy atmosphere to the customer which is very important.
Technological Factor
There is a lot of technological growth which is taking place in all the industries all over
the world and because of experience the company as understood the importance of technology in
the company therefore they are accepting the changes in all the forms possible. There is a lot of
improvement which is evident in the company because of technology and there are going to be a
lot of ease in the work because of this factor. The wages which are being paid to the employees
can be reduced because of the technology which is being used (Ferlie and Ongaro, 2015).

Legal Factor
The company is trying to provide all the employees the fair treatment in the company and
not on the basic of the race, gender, caste, religion, etc. The customers are treated the right way
from the company’s side because no matter which class they belong from they are all human
beings, and they need comfort so the company provides the customers with social responsibility
(Burchell, Kennedy and Murray, 2015).
Environmental Factor
The weather cannot control by the company and the company totally depends on the
weather they are having because only then the flights will be able to take off, and they cannot put
any customer's life in danger therefore they cannot take off till the environment does not support
them to do their work. There are a lot of customers who are helping the company to grow and not
just the government of the country who is supporting them to grow. The company is also giving
their input for the betterment of the world and the environment which we are living in so that
they can help the world to have change in which they live.
TASK 2
2.i Analysis Of The Organization
Definition of Marketing Mix
It is very important for all the company’s to have a market mix of communication in their
strategies to make the company work more efficiently and productivity. There are 7 P’s which
are involved in this strategy which are price, promotions, place, product, physical evidence,
people and process. British Airways takes care of all these factors to make the company work
better every time. Though there is unstability in the market regarding the economy but the
company is trying it’s best to make the most profit by making the customers more aware of the
product and services the company is coming up with so that the company and the customers can
benefit from it.
The effect on decision-making because of the 7 P’s are as follows.

Price
It is very important for the company to understand that the prices of the company should
be low because of the GDP of the country which is not stable and also there is a lot of
unemployment which is taking place in the country therefore the company will have to be even
more careful while making decisions for them (Parsons, Maclaran and Chatzidakis, 2017). If the
prices of the company are not reduced then the company will face a lot of lose in the future.
Place
The location of the company is in London which is the best place for the company to
expand itself and keep a check on the company’s overall growth because that will make the
company stay under control. There are a lot of airports which are tied u with this company so
that the operations in the company can take place smoothly.
Promotions
The promotions which are being by the company are high because promotions are
making a lot of difference in the company and is helping the company gain a lot of profit even
after there is a lot of instability in the country (Black, 2019). Marketing is making a lot of
difference in a lot of companies in the present world and the importance of that factor is
understood by the company therefore they are using that factor as their advantage and are
making the most from that factor.
Physical evidence
The company has gained a lot of experience from the past and therefore they have a good
image and brand name in the country. The government and the people are supporting the
company to grow more and more which is a very important factor for the company. Look of the
company is very good because the designs which are being used in the company, the cabin crew,
flight interiors, etc are very attractive for the customers who are making the company have better
improvement on this factor and there were many decisions which were taken on this factor.
Product

The product the company is providing is making people travel from one place to the other
in less time and this is because of the technology which are being developed now and then in the
world. There is division of classes in the company so that the operations of the company can take
place better. The customers must get there comfort in the way they are traveling and that is very
important for the customers and the company to provide the customers with their needs and
demands (Lindberg, Czarniawska and Solli, 2015).
People
There is a fair treatment in the company therefore there are so many employees who are
working in the company which includes 15000 cabin crew, 5500 engineers and 3600 pilots. The
cabin crew in this airline is selected from the best of institutes of the world so that they can have
skilled employees working in the company so that the customers can be handled in a better
manner.
Process
Booking tickets have become a work of just one click which is a great advantage for the
company. The British Airlines have also started a holiday offer which is including 9 types of
holiday packages for the customers. The company is still trying to make the travelling process
for the customers even much easier by giving them the right facilities they need, like checking in
and luggage is a long process so there are decisions which have to be taken by the company to
make the customers have a pleasant travel.
2.ii Evaluate the Effectiveness
The company will be very happy and satisfied with getting in the changes for the
company because since there is a instability in the country the company is looking out for
different ways through which they can attract a lot of customers in their company and that is very
important because the customers are the kings of the market and the companies in the world are
functioning because of them (Halfpenny and Procter, 2015). The changes which the company
will make that will not jut affect the company but the customers of the company as well because
the customers are always looking for something unique in the companies and if the British
Airlines provides the customers with that unique feature then the company will be able to capture
the market. The government and the people are supporting the company is a great advantage for

the company but the use of that factor has to be done properly and that is very important. It is
quite possible that the employees of the company might not like the changes in the company
because the wages are getting less and the technology is taking their places as well therefore the
employees which will be left in the company have to do more work than what is expected out of
them which can create a problem for them but as long as the company is paying the employees
per hour till then they can use the employee’s as and how they want.
The company will have positive response to the market communication mix when the
decision are made after the analysis of these factors because that will make the company get a lot
of profit and if that happens then the employees of the company can have their regular wages
back and the employees will be again satisfied with the work they are doing for the company.
There has to be a set of motivations in the employees and the management of the company so
that the right decisions for the benefit of the company can be made and the company will be able
to function better and efficiently should be there aim and the company must reach their
objectives and aims. The company has had a lot of experience in the field therefore it is very
important for the company to use that experience in the field so that they can be better than the
other companies in the industry. The British Airlines understand the importance of the factor that
the changes in the company are very important because the wants and needs of the customers
keep changing and the airlines must also meet the needs and demands of the customers is a very
important factor for any of the company. There is a lot of competition which is coming up in the
industry which the company will have to be careful of and how do they get a competitive
advantage over them is by using the right strategies and changing their decisions according to
time and using the experience they have collected over time which is very important for any
company.
British Airlines has named its name from a long time into this industry, and they have
made the customers get what they need from the service they are expecting out of an airlines
company and the company has had a great success with that but the changes which are coming in
the customers and the class division which they have created for themselves have to be kept in
mind for the company so that they can make the customers satisfied with the services. That is
why British Airlines has made a separate class division like business and economy so that the

comfort for the upper and the middle class can be made and all the customers are happy and
satisfied with the flight and services (Dickmann, Brewster and Sparrow, 2016).
2.iii Areas For Improvement
There can be a lot of changes which can be made after analyzing the factor of the
company because there will be clearer idea about the company which is a very important factor
for the company (Johnstone, 2016). There are a lot of changes which still need to be made in the
company for the betterment of the company which are very important because they will be after
making more decisions for the company will make them have a competitive advantage in the
market and not be the second largest in Europe but the entire world which is very important. The
people are supporting this company because the service the cabin crew is providing the
customers is very good because they are providing the customers with the right treatment which
is very important. It is because the company is hiring people from high institutions which are
very qualified to serve to the customers in the flight is very important because making the
customer shave a stable comfort in the airlines they will have loyalty towards that airlines, and
they will be traveling more often than before in the same airlines.
The company did not have to promote themselves so much before because the
government was helping the company to grow therefore the company did not have to make many
efforts to make a name for them in the market because they got that name automatically. But
now the customers are changing and the promotions are really making a huge impact on the
customers therefore the company has decided to make a lot of promotions for the company so
that the company can get a lot of profit (Nudurupati, Tebboune and Hardman, 2016). The
processing of the customers in the airports also have to become better because that is very time-
consuming for the customers and can irritate a lot of customers from traveling which is a very
bad thing for the company. Like the checking in and luggage counter takes a lot of time which
has to but cut short for the betterment for the customers so that they do not have much trouble in
doing anything.
The tie ups the company is having is going to make the company have a great advantage
in the market and also that they are having a lot of experience in this field which is making the
company have a great name for themselves in the market therefore they can experiment new
methods to make the customers satisfied with what they have so that the customers will be able

to have a better experience with the airlines and this way the company will be unique in its own
way and the company will have loyal customers in the company for the better treatment they are
providing which no other company is providing (Renwick and et.al., 2016). British Airways is
anyways supported by the people, and they experiment with the company will be happily doing it
because the prices of the company are low and to make the customers have such low prices then
they also have the right to make changes which are experimented on them so that the airlines can
get honest feedback's and can work upon it so that they can improve and make better decisions
for the company which are going to be very useful for the company. The company will have
keep changing their designs and interiors of the flight so that they can come up with something
unique which no other company is providing which is making the customers have a good time in
the flight they are traveling in very important. Customers are always looking for uniqueness in
things and different items or services which are giving them satisfaction in some way or another
(Lambert, Browne and Michaelides, 2015).
CONCLUSION
British Airlines has a lot of experience which is a very important factor for the company
which is giving the company a great advantage over the other companies in the market. The
company has to use that experience in the market by making more decisions and strategies which
will help the company to grow and make the most out of them so that the company will be able
to make the most even if there is instability in the country regarding the economic conditions.

REFERENCES
Books and Journals
Black, K.U., 2019. Business statistics: for contemporary decision making. Wiley.
Burchell, J., Kennedy, S. and Murray, A., 2015. Responsible management education in UK
business schools: Critically examining the role of the United Nations Principles for
Responsible Management Education as a driver for change. Management
Learning. 46(4). pp.479-497.
Butt, G., 2020. Contemporary Developments in Geography Education Research and Theory.
In Geography Education Research in the UK: Retrospect and Prospect (pp. 71-114).
Springer, Cham.
Collings, D.G., Wood, G.T. and Szamosi, L.T., 2018. Human resource management: A critical
approach. In Human Resource Management (pp. 1-23). Routledge.
Dickmann, M., Brewster, C. and Sparrow, P. eds., 2016. International human resource
management: contemporary HR issues in Europe. Routledge.
Ferlie, E. and Ongaro, E., 2015. Strategic management in public services organizations:
Concepts, schools and contemporary issues. Routledge.
Findlay, P. and Thompson, P., 2017. Contemporary work: Its meanings and demands. Journal of
Industrial Relations. 59(2). pp.122-138.
Halfpenny, P. and Procter, R. eds., 2015. Innovations in digital research methods. Sage.
Halpern, N., Graham, A. and Dennis, N., 2016. Low cost carriers and the changing fortunes of
airports in the UK. Research in transportation business & management. 21. pp.33-43.
Johnstone, S., 2016. Labour and management co-operation: workplace partnership in UK
financial services. Routledge.
Lambert, P.S., Browne, W.J. and Michaelides, D., 2015. Contemporary developments in
statistical software for social scientists. Innovations in Digital Research Methods.
pp.143-160.
Lindberg, K., Czarniawska, B. and Solli, R., 2015. After NPM?. Scandinavian Journal of Public
Administration. 19(2). pp.3-6.
Nudurupati, S.S., Tebboune, S. and Hardman, J., 2016. Contemporary performance measurement
and management (PMM) in digital economies. Production Planning & Control. 27(3).
pp.226-235.
Parsons, E., Maclaran, P. and Chatzidakis, A., 2017. Contemporary issues in marketing and
consumer behaviour. Routledge.

Renwick, D.W and et.al., 2016. Contemporary developments in Green (environmental) HRM
scholarship.
Online
British Airways. 2010. [Online]. Available through
<https://www.britishairways.com/cms/global/microsites/ba_reports0910/
pdfs/BA_AR_2010.pdf>

APPENDIX
British Airways was founded in 1974 which has its headquarters in Harmondsworth,
United Kingdom. The revenue with British Airways has made in 2018 is £13,020 and the net
income is £1,952 in the same year. British Airways was an official partner for the Olympic
Games in 2012. The establishment was a joint venture of British Overseas Airways Corporation
and British European Airways in 1953. It was after 13 years as the state company it was
converted into privatized company in 1987 in which major part was of Conservative
Government. In 2008 the company merger plans with Iberia which took place in 2011.

Illustration 1: financial statement of BA
(Source: British Airways, 2010)
British Airways merged with Iberia it created International Airlines Group (IAG) which was the
third largest airline group in terms of revenue and the second largest in Europe. The destinations
the company is covering are 183. Sir John King was struggling to make this company the most
profitable air carrier in the world. British Airways took over UK's second airlines in July 1981.
An announcement was made in 2019 that there will be four retro liveries in the company.
Number of employees in the company are 38,347 and number of aircraft's these airways has been
293. All the four companies merged to make British Airways in 1974 which are British Overseas
Airways Corporation, British European Airways, Cambrian Airways and North-east Airlines. In
2017-18 British Airways was the first passenger airline which generated more than $1 billion on
single air routes. The key people of the company are Alex Cruz and Stephen William.